The inclusion of a gravity concentration circuit will increase overall gold recovery and will provide greater flexibility in the operation of the circuit.

Confirmatory testwork with respect to cyanidation recovery on primary concentrates is ongoing.

The overall gold recovery from gravity concentration, flotation and cyanidation is expected to be 90%.

Flotation testwork was carried out on three composite samples from the Spanish Mountain Gold Project in British Columbia. The samples were taken from an area that is currently being investigated as the economically advantageous location for a potential starter pit under the Preliminary Economic Assessment ("PEA"). The composites had head gold grades varying from 0.45 to 0.94 g/t Au and represented different lithologies from within the deposit.

The testwork demonstrated that at a primary grind of 80% passing 184 microns a rougher gold recovery of 96.5% can be achieved. Cleaning of the rougher concentrate through a single stage of open circuit cleaning results in a loss of gold equal to approximately 1.5%. The Company therefore believes that the results support previous metallurgical test results that indicated 95% recovery of gold to a cleaned concentrate. The Company also believes that optimization of the flotation conditions may result in a slight increase in gold recovery in the order of 1%. Additional cyanidation recovery testwork on primary concentrates is being conducted to confirm the previous testwork results indicating a 95% extraction from the concentrates.

Consistent with the results generated by various metallurgical analyses to date, gold recovery assumption at 90% will be used for the PEA which is currently being prepared and which the Company expects to release during the fourth quarter of 2010.

The flotation testwork was undertaken at G&T Metallurgical Laboratory in Kamloops, British Columbia under the supervision of Dr. Morris Beattie, P. Eng, a qualified person under National Instrument 43-101, who has reviewed the contents of this news release.

A complete report detailing this testwork will be available shortly under the profile of the Company on SEDAR and on the website of the Company.

About Spanish Mountain GoldSpanish Mountain Gold Ltd. is focused on developing its flagship Spanish Mountain gold project in central southern British Columbia. The National Instrument 43-101 compliant resource estimate released in 2009 documented that 3.9 Million oz Au are contained (at a 0.30 g/t Au cut-off grade) in the measured and indicated resource categories. The Company has no debt and owns 100% of all four gold properties located in British Columbia.

On Behalf of the Board,SPANISH MOUNTAIN GOLD LTD.

Brian Groves

Brian Groves.
President

This news release contains forward-looking information, which involves known and unknown risks, uncertainties and other factors that may cause actual events to differ materially from current expectation. Important factors - including the availability of funds, the results of financing and exploration activities, the interpretation of drilling results and other geological and metallurgical data, risks associated with the estimation of mineral resources and the geology, grade and continuity of mineral deposits, project cost overruns or unanticipated costs and expenses -- that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time on SEDAR (see www.sedar.com). Forward-looking statements can often be identified by the use of words such as "plans", "expects", "is expected", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "believes" or variations (including negative variations) of such words and phrases. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.